Ethereum’s price has started a downside correction after failing to clear the $3,885 resistance zone. Currently, ETH is trading below $3,800 and may continue to slide towards $3,720.
After failing to clear the $3,880 resistance level, Ethereum started a pullback. The price is currently below $3,840 and the 100-hourly Simple Moving Average. Additionally, a key bullish trend line with support near $3,830 was broken on the hourly chart of ETH/USD.
The pair could potentially start a fresh upward move unless there is a close below the $3,720 support level. The bulls are active near the 61.8% Fib retracement level of the upward wave, but the price might face resistance near the $3,810 and $3,840 levels. An upside break above $3,840 could send the price higher towards $3,920 and potentially $4,000.
If Ethereum fails to clear the $3,840 resistance, it could continue to move down. Initial support on the downside is near $3,765, followed by major support near the $3,750 zone and the main support at $3,720. A clear move below $3,720 might push the price towards $3,650 and even $3,550 in the near term.
Hourly MACD for ETH/USD is gaining momentum in the bearish zone, indicating a potential downward trend. Meanwhile, the Hourly RSI is now below the 50 zone, suggesting a bearish sentiment in the market.
Ethereum’s price movement is currently facing a downside correction, but there is potential for an upward move if key resistance levels are breached. However, failure to clear resistance levels could lead to further downside towards key support levels. Traders should closely monitor these price levels and technical indicators for potential trading opportunities.
